GAZETTE NOTICE NO. 5963

in accordance with the requirements of section 139 of the Water Act, 2016. 17th May, 2024 THE KENYA GAZETTE After considering the application, the written and oral submissions by all stakeholders during the consultation period, and based on latest available data, WASREB has determined an upward tariff review for AWASCO is justified in order to improve service delivery, operate sustainably and protect consumer interests by meeting the tariff conditions. WASREB gives a one (1) month notice to all existing and potential customers of AWASCO that the approved tariffs for the three Financial Years 2024/25, 2025/26, and 2026/27 shall be as follows: 1.0 Approved Tariff Structure 1.1 Water Tariff Structure for the period 2024/2025 to 2026/2027 Consumer Categories Consumption Block Approved Tariff (m3) (KSh/M3) Domestic/Residential 1-6 90 7-20 115 21-50 120 51-100 125 101-300 130 >300 140 Multi-Dwelling Units Per M3 115 Commercial/Industrial 1-50 120 51-100 125 101-300 130 >300 140 Government/Institutions 1-50 120 51-100 125 101-300 130 >300 140 Public Schools, Colleges and Universities 1-600 120 601-1200 125 >1200m3 135 Unique Consumer Categories Water Kiosks (Per m3) 70 Water Projects (Per m3) 115 Customers with non-functional meters shall be billed based on the average of the last three months’ bills. 1.2 Sewerage Tariff Structure for the period 2024/2025 to 2026/2027 (a) Consumers with a Water Connection (i) Sewerage will be charged at 75% of the water volumes, billed at the tariff for water specified (in 1.1) above for all customer categories. (ii) Disconnected water accounts shall be charged based on the average of the last three months’ sewer charges before the disconnection. (b) Consumers without a Water Connection Sewerage consumers without a water connection shall be charged as follows: (i) Single dwelling Domestic unit: KSh. 300 Per Month (ii) All other categories: 75% of the volume of water consumed as per the metered source of water. • 1.3 Indexation The utility’s approved tariffs for water and sewerage shall be eligible for annual indexation, as per the regulations of the Water Services Regulatory Board (WASREB). The inflation adjustment shall come into effect every July of the tariff period commencing July 2025. • 1.4 Miscellaneous Charges • These shall be as follows: Item/ Service Charge (KSh.) Water Deposit Category of consumer Domestic 2,500 Multi Dwelling Units (MDU - Small); 4-10 units 5,000 Multi Dwelling Units (MDU - Medium); 11-20 units 10,000 Multi Dwelling Units (MDU - Large); > 21 units 20,000 Retail shops less than 10m3 3,000 Retail shops more than 10m3 3,500 Bar, restaurants less than 15 m3 4,000 Bar, restaurants more than 15 m3 6,000 Hotel less than 150 m3 12,000 Hotel more than 150 m3 15,000 Hospitals more than 150 m3 20,000 Health centres less than 150 m3 12,000 Schools less than 200 m3 10,000 Schools and other institutions more than 200 m3 20,000 Minor construction sites more than 200 m3 15,000 Major construction sites more than 300 m3 50,000 Light industries less than 200 m3 30,000 THE KENYA GAZETTE 17th May, 2024 Item/ Service Charge (KSh.) Medium industrial between 200 m3 and 300 m3 50,000 Heavy industries more than 300 m3 100,000 Water Kiosks 5,000 *Customers with only sewer connection to be charged a deposit equivalent to water connection Other Charges Service New water connection fee 2,500 Water Reconnection fee – at meter point 1,000 Water Reconnection fee – at mains 5,000 and double deposit Tanker – 8000, 16,000 litres 2,500, 5,000 respectively per tanker within WSP Service Area for all consumers Sale of water Per M3 at bowsing point (own tanker) 115 Replacement of stolen or damaged meters 100% of the market cost of the meter Meter testing on request 500 Sewer Connection- Residential/ Domestic 2,500 Sewer Connection- Commercial, Government, schools, Universities and Colleges 5,000 Sewer Connection- Industrial 15,000 Private sewer unblocking 2,500 Leak detection services 1,000 Sewer Reconnection fee (At mains) 15,000 For cutting off the supply at the request of the consumer 200 For turning on the supply otherwise than in respect of a first connection 200 Exhauster Services (Company Exhauster) 5,000 for other customers and 4,000 for informal settlements Private Exhausters (Dumping into the company’s sewer system) 15,000 per Truck per month Penalties Illegal water connection, -Commercial, Industry, Construction (Fraud) 100,000 plus estimated consumption during the period of the illegality Illegal water connection, (Fraud) – Domestic 30,000 plus estimated consumption during the period of the illegality Overcharging (fraud) at water kiosk 15,000 Illegal sewer connection- Commercial, Industry, Construction 100,000 Illegal sewer connection- Domestic, Government, Schools, Universities and Colleges 30,000 Self-reconnection after cut off for non-payment 5,000 and billing to be backdated from date of cut off Surcharge for tampering with meters (this to include meter removal, reversing of meter etc) 5,000 Surcharge for direct suction of water from the supply line using a pump 10,000 2.0 Analysis of Cost Structure Below is the summary of the projected Annual cost structure that makes up the total costs to be incurred by AWASCO during the tariff period: ` 2022/23 2023/24 2024/25 2025/26 2026/27 Operations 95,996,359 126,222,726 146,286,056 169,940,096 199,415,599 Maintenance 6,688,010 7,455,000 10,950,000 14,350,000 18,350,000 Regulatory Levy 2,191,445 5,999,146 9,820,098 11,746,509 13,774,027 Total O&M Costs 104,875,814 139,676,873 167,056,154 196,036,605 231,539,626 Investment Costs - 6,690,000 31,913,150 35,940,000 39,590,000 Debt Repayment - 912,546 1,825,092 1,825,092 2,737,638 Total Costs 104,875,814 147,279,419 200,794,396 233,801,697 273,867,264 Total Billing (KSh.) 60,430,536 149,978,656 245,502,443 293,662,715 344,350,669 Collection Efficiency (%) 80% 82% 84% 86% 88% Projected Revenue 48,344,429 122,982,498 206,222,052 252,549,935 303,028,589 Total Cost Coverage 46% 84% 103% 108% 111% 3.0 Conditions attached to the tariff approval. The conditions attached to this approval which shall form part of the license conditions of AWASCO are: (i) Service Delivery Conditions attached to the Tariff Target 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 Water Coverage (%) 20% 23% 26% 29% 32% Water quality standards (%) 100% Compliance with Standards Personnel Expenditure as % of O&M 34% 30% 26% 24% 21% Non-Revenue Water 42% 40% 38% 36% 34% Hours of Supply (Hrs.) 14 15 15 16 16 Staff per 1000 connections 13 9 7 6 5 Maintenance Expenditure as % of O&M 6% 5% 7% 7% 8% Metering ratio (%) 72% 100% 100% 100% 100% Collection Efficiency (%) 80% 82% 84% 86% 88% Resale at Kiosk KSh. 5.00 per 20l Jerry Can (ii) Annual budgets: The WSP shall adhere to the budgetary levels set in the tariff. 17th May, 2024 THE KENYA GAZETTE (iii) Surpluses: The surpluses realised during the tariff period shall be used to implement priority service delivery capital projects approved by WASREB (iv) Reporting: The utility shall submit to WASREB a quarterly performance report in the format provided (v) Metering: AWASCO shall progressively enhance the metering ratio to attain 100% as per condition 3 (i) above (vi) Creation of distinct water and sewer cost centres: AWASCO will ensure it creates separate water and sewer cost centres and maintains distinct records of operations of the two centres. (vii) Investments: The utility shall undertake the investments in Table 1: Table 1: Investments A Metering Target Area/ Location Item Description Unit Qty Unit Cost (KSh.) 2024/2025 2025/2026 2026/2027 ii Single jet co-polymer 15mm R200 No 1500 1,500 2,250,000 iii Single Jet Copolymer 15mm meters No 2000 5,000 10,000,000 iv Single Jet Copolymer 15mm meters No 4000 5,500 22,000,000 2,250,000 10,000,000 22,000,000 B Water Network Extension i Sosian Water Supply Last Mile Connectivity (50 No.Water connection for Tigoi Zone,and 100 No. Water Connections for Nyang'ori Zone) 1,863,750 ii Vihiga Water Supply Last Mile Connectivity (70 No.Water connection for Maragoli Ward-Vihiga/Majengo Zone) 1,034,050 iii Mbale Water Supply (Mbale East and West) Last Mile Connectivity (75 No.Water connection for Wamuluma/Walugaga Mbale East Zone, and 100 No. Water Connections for Lyaduywa Ward Mbale West Zone) 2,224,450 iv Mbale Water Supply (Chavakali East and West) Last Mile Connectivity (90 No. Water connection for Chavakali East Zone, and 100 No. Water Connections for Chavalaki West Zone) 2,656,600 v Kaimosi Water Supply (Shamakhok ho and Mago) Last Mile Connectivity (100 No. Water connection for Shamakhokho Zone, and 75 No. Water Connections for Mago Zone) 2,085,700 vi Kaimosi Water Supply (Complex and Maganda) Last Mile Connectivity (60 No. Water connection for Muhundu Ward/Maganda Zone, and 85 No. Water Connections for Complex/Jeptulu Zone) 1,918,000 vii Maseno Water Supply(Kima and Ebulonga) Last Mile Connectivity (120 No.Water connection for Wemilabi Ward/Kima Zone, and 130 No. Water Connections for Ebulonga Ward/Ebulonga Zone) 2,996,400 viii Maseno Water Last Mile Connectivity (150 No. Water 2,774,000 THE KENYA GAZETTE 17th May, 2024 A Metering Target Area/ Location Item Description Unit Qty Unit Cost (KSh.) 2024/2025 2025/2026 2026/2027 Supply(Luan da and Mabungo) connection for Luanda Ward/Luanda Zone, and 100 No. Water Connections for Emabungo Zone) ix Maseno Water Supply(Olan g Line and Emusire) Last Mile Connectivity (85 No. Water connection for Bunyore Ward/Emusire Zone, and 50 No. Water Connections for Bunyore Ward/Olang Line Zone) 1,943,700 x Bumbo Water Supply Last Mile Connectivity (100 No.Water connection for Shamakoko/Shiru Ward/Jettulu/Serem Zons 928,500 xi Chango Water Supply Last Mile Connectivity (80 No. Water connection for Chavugani/Chango Zone) 758,000 21,183,150 - - C Water Network Rehabilitation i Maseno water supply Rehabilitation of a 2Km pipeline DN 110, PN 12.5 Maseno water supply Mtrs 2000 1,300 2,600,000 ii Kaimosi Water Supply Rehabilitation of a 3Km, 90mm pipeline Kaimosi Water Supply Mtrs 3000 1,300 3,900,000 iii Mbale,Hed we,Mukuli and Mbini Areas Rehabilitation and upgrading a 2Km 110mm pipeline from Mbale to Hedwe, Mukuli, and Mbihi areas. Mtrs 2000 1,500 3,000,000.00 iv Mbale Tank to Wondeyo Rehabilitation of a 3Km 63mm pipeline from Mbale tank to Wondeyo area. Mtrs 2500 1,320 3,300,000.00 - 3,900,000 8,900,000 D Computers and Accessories i Laptops 11th Generation Intel Core i7-1165G7 No 25 130,000 1,300,000 650,000 1,300,000 ii Desktops HP ProDesk 400 G7 MT, Intel Core i7 10700, 8GB DDR4 3200, 1TB HDD No 30 110,000 1,100,000 550,000 1,650,000 iii Printer Ricoh DD 3324 Colour Digital Duplicator, to 130 ppm No 5 75,000 375,000 iv UPS Maintenance-free sealed Lead-Acid battery with suspended electrolyte: leakproof No 20 8,500 170,000 2,400,000 1,200,000 3,495,000 E Plant and Equipment i Motor 50KW Pc 1 100,000 100,000 ii Motor 2KW Pc 3 350,000 1,050,000 iii Panel Accessories Pc 7 100,000 700,000 iv Capacitor Banks Pc 7 45,000 315,000 v Panel Accessories Pc 10 110,000 1,100,000 17th May, 2024 THE KENYA GAZETTE A Metering Target Area/ Location Item Description Unit Qty Unit Cost (KSh.) 2024/2025 2025/2026 2026/2027 vi AVS- Automatic Voltage Switcher PC 10 20,000 200,000 vii Pump sets PC 4 500,000 2,000,000 viii Motor 2KW Pc 4 350,000 1,400,000 ix Assorted Cables LM 1 800,000 800,000 x Appurtenan ces Item 1 800,000 800,000 xi Pump Set Pc 4 1,800,000 7,200,000 xii Motors Pc 4 400,000 1,600,000 xiii Motors Pc 4 750,000 3,000,000 xiv Panel Accessories LM 10 100,000 1,000,000 xv Appurtenan ces Item 1 900,000 900,000 - 18,100,000 4,065,000 F Furniture and Fixtures Office Chairs No 15 15,000 225,000 Office Tables No 10 10,000 100,000 Board Chairs No 15 17,000 255,000 Office Chairs No 30 15,000 450,000 Office Tables No 25 10,000 250,000 Work station office tables No 10 25,000 250,000 Bord chairs No 10 20,000 200,000 Cabinets No 30 13,000 390,000 Office Chairs No 30 15,000 450,000 Office Tables No 10 10,000 100,000 Work station office tables No 2 25,000 250,000 Bord chairs No 10 20,000 200,000 Cabinets No 10 13,000 130,000 580,000 1,540,000 1,130,000 G NRW iv D. M. As (63mm- 90mm) Smart metering No 50 110,000 5,500,000 - v Smart Meters (DN 63- 110MM No 10 120,000 1,200,000 5,500,000 1,200,000 - TOTALS 31,913,150 35,940,000 39,590,000 Dated the 2nd May, 2024. JULIUS ITUNGA, Ag. Chief Executive Officer, MR/5723150 Water Services Regulatory Board.